Input tax credit on job work goods allows direct dispatch, with deemed supply rules for delayed return of inputs and capital goods. Input tax credit is available to the principal for inputs and capital goods sent to a job worker, including direct dispatch without first bringing the goods to the principal's place of business, subject to prescribed conditions and restrictions. If inputs are not received back, or not supplied from the job worker's place of business, within one year, they are deemed supplied by the principal on the date of dispatch; for capital goods, the corresponding period is three years. The deeming rule does not apply to moulds and dies, jigs and fixtures, or tools sent to a job worker.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit on job work goods allows direct dispatch, with deemed supply rules for delayed return of inputs and capital goods.
Input tax credit is available to the principal for inputs and capital goods sent to a job worker, including direct dispatch without first bringing the goods to the principal's place of business, subject to prescribed conditions and restrictions. If inputs are not received back, or not supplied from the job worker's place of business, within one year, they are deemed supplied by the principal on the date of dispatch; for capital goods, the corresponding period is three years. The deeming rule does not apply to moulds and dies, jigs and fixtures, or tools sent to a job worker.
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